By Russell Glaser
The January candlestick on the USD/CHF monthly chart shows two contrasting signals that could be interpreted as either bullish or bearish. However, bias remains to the downside.
An argument for a rally in the pair holds water as the January candlestick closed as an inverted hammer. This minor reversal pattern requires confirmation in the form of a move above the January close at 0.9415.
First resistance comes in at the lower channel line that comes in this month at 0.9440, followed by the January high of 0.9780, and finally by the November and December highs near the 1.0070 mark.
However, bias is to the downside as the past monthly chart shows, 5 of the last 8 monthly bars have been declines with the long term trend to the downside. Supporting a continuation of the downtrend is the January close that failed to end the month above the lower channel line that comes off of the 2008 low.
Support is found at the January 2010 low at 0.9320 followed by the all-time low from the November candlestick at 0.9300.
Forex Market Analysis provided by ForexYard.
© 2006 by FxYard Ltd
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